CARRIER GLOBAL CORP (CARR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CARR - US14448C1045 - Common Stock
52.41 USD
+2.05 (+4.07%)
52.41 USD
0 (0%)
Overall CARR gets a fundamental rating of 4 out of 10. We evaluated CARR against 41 industry peers in the Building Products industry. There are concerns on the financial health of CARR while its profitability can be described as average. CARR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
CARR had positive earnings in the past year.
In the past year CARR had a positive cash flow from operations.
CARR had positive earnings in each of the past 5 years.
CARR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.46%, CARR is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
With an excellent Return On Equity value of 27.45%, CARR belongs to the best of the industry, outperforming 82.93% of the companies in the same industry.
CARR has a Return On Invested Capital of 5.09%. This is in the lower half of the industry: CARR underperforms 73.17% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CARR is below the industry average of 12.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.46% | ||
| ROE | 27.45% | ||
| ROIC | 5.09% |
ROA(3y)10.88%
ROA(5y)9.38%
ROE(3y)33.63%
ROE(5y)31.44%
ROIC(3y)8.06%
ROIC(5y)7.66%
1.3 Margins
CARR has a Profit Margin of 18.05%. This is amongst the best in the industry. CARR outperforms 92.68% of its industry peers.
In the last couple of years the Profit Margin of CARR has grown nicely.
The Operating Margin of CARR (11.00%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of CARR has declined.
The Gross Margin of CARR (27.36%) is comparable to the rest of the industry.
CARR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11% | ||
| PM (TTM) | 18.05% | ||
| GM | 27.36% |
OM growth 3Y-5.06%
OM growth 5Y-4.9%
PM growth 3Y45.61%
PM growth 5Y16.99%
GM growth 3Y-2.78%
GM growth 5Y-1.79%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CARR is destroying value.
Compared to 1 year ago, CARR has more shares outstanding
The number of shares outstanding for CARR has been increased compared to 5 years ago.
The debt/assets ratio for CARR has been reduced compared to a year ago.
2.2 Solvency
CARR has an Altman-Z score of 2.42. This is not the best score and indicates that CARR is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.42, CARR is not doing good in the industry: 75.61% of the companies in the same industry are doing better.
CARR has a debt to FCF ratio of 8.45. This is a slightly negative value and a sign of low solvency as CARR would need 8.45 years to pay back of all of its debts.
CARR has a Debt to FCF ratio of 8.45. This is in the lower half of the industry: CARR underperforms 63.41% of its industry peers.
A Debt/Equity ratio of 0.78 indicates that CARR is somewhat dependend on debt financing.
CARR's Debt to Equity ratio of 0.78 is on the low side compared to the rest of the industry. CARR is outperformed by 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 8.45 | ||
| Altman-Z | 2.42 |
ROIC/WACC0.62
WACC8.25%
2.3 Liquidity
CARR has a Current Ratio of 1.14. This is a normal value and indicates that CARR is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.14, CARR is not doing good in the industry: 87.80% of the companies in the same industry are doing better.
CARR has a Quick Ratio of 1.14. This is a bad value and indicates that CARR is not financially healthy enough and could expect problems in meeting its short term obligations.
CARR has a worse Quick ratio (0.75) than 85.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The earnings per share for CARR have decreased by -0.36% in the last year.
Measured over the past years, CARR shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.27% on average per year.
Looking at the last year, CARR shows a very negative growth in Revenue. The Revenue has decreased by -22.93% in the last year.
Measured over the past years, CARR shows a small growth in Revenue. The Revenue has been growing by 3.86% on average per year.
EPS 1Y (TTM)-0.36%
EPS 3Y7.25%
EPS 5Y20.27%
EPS Q2Q%-12.99%
Revenue 1Y (TTM)-22.93%
Revenue growth 3Y2.94%
Revenue growth 5Y3.86%
Sales Q2Q%-6.77%
3.2 Future
The Earnings Per Share is expected to grow by 11.59% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.00% on average over the next years.
EPS Next Y-2.27%
EPS Next 2Y5.08%
EPS Next 3Y7.79%
EPS Next 5Y11.59%
Revenue Next Year-3.39%
Revenue Next 2Y0.25%
Revenue Next 3Y1.95%
Revenue Next 5Y5%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.85, which indicates a rather expensive current valuation of CARR.
Compared to the rest of the industry, the Price/Earnings ratio of CARR is on the same level as its industry peers.
CARR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.45.
The Price/Forward Earnings ratio is 16.95, which indicates a correct valuation of CARR.
CARR's Price/Forward Earnings ratio is in line with the industry average.
CARR is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.85 | ||
| Fwd PE | 16.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CARR is valued a bit more expensive than 60.98% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as CARR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.61 | ||
| EV/EBITDA | 14.93 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.93
EPS Next 2Y5.08%
EPS Next 3Y7.79%
5. Dividend
5.1 Amount
CARR has a Yearly Dividend Yield of 1.79%.
In the last 3 months the price of CARR has falen by -22.64%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.39, CARR pays a better dividend. On top of this CARR pays more dividend than 85.37% of the companies listed in the same industry.
CARR's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
5.2 History
CARR has been paying a dividend for over 5 years, so it has already some track record.
CARR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
CARR pays out 18.56% of its income as dividend. This is a sustainable payout ratio.
DP18.56%
EPS Next 2Y5.08%
EPS Next 3Y7.79%
52.41
+2.05 (+4.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners86.61%
Inst Owner Change-0.71%
Ins Owners6.03%
Ins Owner Change1.31%
Market Cap44.60B
Revenue(TTM)22.06B
Net Income(TTM)3.98B
Analysts76.88
Price Target74.11 (41.4%)
Short Float %1.41%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
Yearly Dividend0.78
Dividend Growth(5Y)N/A
DP18.56%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.53%
Min EPS beat(2)-0.24%
Max EPS beat(2)15.31%
EPS beat(4)3
Avg EPS beat(4)7.55%
Min EPS beat(4)-0.24%
Max EPS beat(4)15.31%
EPS beat(8)6
Avg EPS beat(8)5.54%
EPS beat(12)9
Avg EPS beat(12)4.93%
EPS beat(16)13
Avg EPS beat(16)6.21%
Revenue beat(2)0
Avg Revenue beat(2)-1.75%
Min Revenue beat(2)-1.83%
Max Revenue beat(2)-1.67%
Revenue beat(4)0
Avg Revenue beat(4)-2.28%
Min Revenue beat(4)-4.33%
Max Revenue beat(4)-1.31%
Revenue beat(8)0
Avg Revenue beat(8)-4%
Revenue beat(12)2
Avg Revenue beat(12)-2.9%
Revenue beat(16)4
Avg Revenue beat(16)-2.03%
PT rev (1m)-7.23%
PT rev (3m)-13.24%
EPS NQ rev (1m)-21.32%
EPS NQ rev (3m)-35.67%
EPS NY rev (1m)-1.37%
EPS NY rev (3m)-11.49%
Revenue NQ rev (1m)-3.57%
Revenue NQ rev (3m)-8.47%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)-3.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.85 | ||
| Fwd PE | 16.95 | ||
| P/S | 2.02 | ||
| P/FCF | 31.61 | ||
| P/OCF | 23.61 | ||
| P/B | 3.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.93 |
EPS(TTM)2.78
EY5.3%
EPS(NY)3.09
Fwd EY5.9%
FCF(TTM)1.66
FCFY3.16%
OCF(TTM)2.22
OCFY4.24%
SpS25.92
BVpS17.05
TBVpS-9.08
PEG (NY)N/A
PEG (5Y)0.93
Graham Number32.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.46% | ||
| ROE | 27.45% | ||
| ROCE | 8% | ||
| ROIC | 5.09% | ||
| ROICexc | 5.34% | ||
| ROICexgc | 23.15% | ||
| OM | 11% | ||
| PM (TTM) | 18.05% | ||
| GM | 27.36% | ||
| FCFM | 6.4% |
ROA(3y)10.88%
ROA(5y)9.38%
ROE(3y)33.63%
ROE(5y)31.44%
ROIC(3y)8.06%
ROIC(5y)7.66%
ROICexc(3y)10.45%
ROICexc(5y)9.61%
ROICexgc(3y)34.91%
ROICexgc(5y)29.9%
ROCE(3y)12.67%
ROCE(5y)12.04%
ROICexgc growth 3Y11.52%
ROICexgc growth 5Y4.64%
ROICexc growth 3Y-15.42%
ROICexc growth 5Y-8.97%
OM growth 3Y-5.06%
OM growth 5Y-4.9%
PM growth 3Y45.61%
PM growth 5Y16.99%
GM growth 3Y-2.78%
GM growth 5Y-1.79%
F-Score5
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 8.45 | ||
| Debt/EBITDA | 3.07 | ||
| Cap/Depr | 37.85% | ||
| Cap/Sales | 2.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 51.21% | ||
| Profit Quality | 35.43% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 2.42 |
F-Score5
WACC8.25%
ROIC/WACC0.62
Cap/Depr(3y)74.81%
Cap/Depr(5y)83.81%
Cap/Sales(3y)2.12%
Cap/Sales(5y)1.96%
Profit Quality(3y)66.45%
Profit Quality(5y)76.55%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.36%
EPS 3Y7.25%
EPS 5Y20.27%
EPS Q2Q%-12.99%
EPS Next Y-2.27%
EPS Next 2Y5.08%
EPS Next 3Y7.79%
EPS Next 5Y11.59%
Revenue 1Y (TTM)-22.93%
Revenue growth 3Y2.94%
Revenue growth 5Y3.86%
Sales Q2Q%-6.77%
Revenue Next Year-3.39%
Revenue Next 2Y0.25%
Revenue Next 3Y1.95%
Revenue Next 5Y5%
EBIT growth 1Y-5.35%
EBIT growth 3Y-2.27%
EBIT growth 5Y-1.23%
EBIT Next Year27.31%
EBIT Next 3Y12.77%
EBIT Next 5Y8.53%
FCF growth 1Y-38.44%
FCF growth 3Y-42.28%
FCF growth 5Y-27.03%
OCF growth 1Y-29.2%
OCF growth 3Y-26.64%
OCF growth 5Y-15.1%
CARRIER GLOBAL CORP / CARR FAQ
Can you provide the ChartMill fundamental rating for CARRIER GLOBAL CORP?
ChartMill assigns a fundamental rating of 4 / 10 to CARR.
What is the valuation status of CARRIER GLOBAL CORP (CARR) stock?
ChartMill assigns a valuation rating of 3 / 10 to CARRIER GLOBAL CORP (CARR). This can be considered as Overvalued.
How profitable is CARRIER GLOBAL CORP (CARR) stock?
CARRIER GLOBAL CORP (CARR) has a profitability rating of 5 / 10.
What is the valuation of CARRIER GLOBAL CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CARRIER GLOBAL CORP (CARR) is 18.85 and the Price/Book (PB) ratio is 3.07.
Can you provide the expected EPS growth for CARR stock?
The Earnings per Share (EPS) of CARRIER GLOBAL CORP (CARR) is expected to decline by -2.27% in the next year.